TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA - Director of Economic and Community Development
DATE: December 12, 2022
RE:
Title
Public Hearing on Authorization of the Issuance of Private Activity Bonds not to Exceed $114,000,000 by the Public Finance Authority Relating to Two Mixed Income Housing Developments Located at 1701 Owen Drive and 1944 Cedar Creek Road
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Strategic Operating Plan FY 2022 - 2026
Goal IV: Desirable Place to Live, Work, and Recreate
• Objective 4.6 - To reduce poverty and homelessness
Executive Summary:
GoodHomes, Inc., acting as the developer, has partnered with the Community Finance Corporation, a non-profit developer and is requesting the City hold a Public Hearing and adopt a resolution authorizing the issuance of not more than $114,000,000 in Private Activity Bonds issued by the Public Finance Authority (PFA). The project involves redevelopment of properties located at 1701 Owen Drive and 1944 Cedar Creek Road. Additional details of each development are attached. The issuance of bonds is a transaction between the PFA and the Community Finance Corporation and does not expose the City to any financial risk. City Council is asked to hold a Public Hearing and adopt the resolutions authorizing the issuance of not more than $114,000,000 in Private Activity Bonds issued by the PFA.
Background:
GoodHomes, Inc. is a developer specializing in the adaptive reuse of underperforming hotels by taking once prosperous developments and converting them into vibrant and meaningful communities. The PFA is a governmental entity established under Section 66.0304 of the Wisconsin State Statutes, authorized to issue tax-exempt, taxable, and tax credit conduit bonds for public and private entities throughout all 50 states.
To enable the developer to access municipal lending rates, the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) requires the City provide reasonable public notice (TEFRA notice) and conduct a Public Hearing (TEFRA Hearing). The hearing provides a reasonable opportunity for interested individuals to express their views, either orally or in writing, on the proposed issue of bonds, location, and nature of the project to be financed. The resolution affirms the project locations, the expressed government burdens, and authorizes the applicable elected representative (Mayor) to approve the issuance of the Private Activity Bonds.
Issues/Analysis:
The developer has been before City Council for the 1701 Owen Drive property and was granted a conditional rezoning. The 1944 Cedar Creek property has not been to City Council and the Developer believes the current plans will not require additional approvals.
The City of Fayetteville is the governmental unit with the geographic jurisdiction containing both project sites and is required to approve the issuance.
The TEFRA Notice was posted in the Fayetteville Observer on December 2, 2022 to allow for a 10-day notice of the TEFRA Hearing.
Budget Impact:
Private Activity Bonds do not involve the City’s finances and do not impact the City’s borrowing ability.
Options:
• Conduct the Public Hearing (TEFRA Hearing) and approve the authorizing resolution,
• Do not Conduct the Public Hearing (TEFRA Hearing) and do not approve the authorizing resolution,
• Direct staff to some other action.
Recommended Action:
Conduct the Public Hearing (TEFRA Hearing) and approve the authorizing resolution,
Attachments:
GoodHomes, Inc. TEFRA Notice
GoodHomes, Inc. TEFRA Resolution
GoodHomes, Inc. 1701 Owen Drive Project
GoodHomes, Inc. 1944 Cedar Creek Project